BAE Systems has been awarded a contract worth more than $500 million to produce additional M109A7 Paladin self-propelled howitzers and M992A3 ammunition carriers for the U.S. Army, according to the company.

The contract, awarded in December 2025, is intended to support the Army’s Armored Brigade Combat Teams by expanding the availability of mobile artillery systems capable of delivering indirect fire support in modern combat environments, according to the company.

“The M109A7 Paladin Self-Propelled Howitzer is designed to provide a significant operational advantage on today’s battlefields and into the future,” said Dan Furber, program director for Artillery and Combat Support at BAE Systems’ Combat Mission Systems business. “Its proven performance demonstrates its value on the field, and we’re proud to support the U.S. Army and its allies in leveraging this critical capability.”

The M109A7 incorporates a modern digital architecture and advanced fire control systems intended to improve lethality, survivability and responsiveness, according to the company. BAE Systems said the vehicle’s adaptable chassis and updated systems are designed to support future upgrades while maintaining mobility and reliability in demanding operational conditions.

Production of the M109A7 takes place at facilities in York, Pennsylvania; Elgin, Oklahoma; and Anniston, Alabama.

George Allison
George Allison is the founder and editor of the UK Defence Journal. He holds a degree in Cyber Security from Glasgow Caledonian University and specialises in naval and cyber security topics. George has appeared on national radio and television to provide commentary on defence and security issues. Twitter: @geoallison

5 COMMENTS

  1. Meanwhile in a parallel universe down under Hanwha Australia in March 2026 delivered the first three (of 28) K9 Huntsman SPH rolling off the production line of a new factory in Victoria for the Australian army. They join 2 Korean built K9s and the first one of 15 AS10 tracked ammunition supply vehicles (remaining 14 to also be built in Victoria).

    The same Australian factory is gearing up to deliver the first of 129 Redback Infantry fighting vehicles in 2027 (full fleet by 2029).

  2. It would make sense to see if we could piggy back on the back of this deal. 40 sets (gun and carrier) for 500m is a good deal to me. Norway paid about the same price for 24 K9’s last year I believe

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